Financial Performance - Full year income before income taxes increased 24% year-over-year to $317.1 million[4] - Total revenues for the fourth quarter increased 10.4% to $979.6 million, and for the full year increased 9.0% to $3.00 billion[3] - Net income for the three months ended October 31, 2024, was $94.3 million, a decrease of 2.0% from $97.3 million in the same period of 2023[23] - Income before income taxes for the year ended October 31, 2024, was $317.1 million, an increase of 23.7% from $256.0 million in 2023[23] - Adjusted EBITDA for the three months ended October 31, 2024, was $159.0 million, compared to $181.2 million for the same period in 2023, reflecting a decrease of 12.2%[28] - Consolidated Adjusted EBIT for the quarter ended October 31, 2024, was $156.9 million, representing a 21.7% increase from $128.9 million in the prior quarter[33] Revenue and Sales - Sale of homes revenues in the fourth quarter increased 11.8% to $927.5 million, with 1,747 homes sold[3] - Homebuilding revenues for the year ended October 31, 2024, reached $2.93 billion, a 8.7% increase compared to $2.70 billion in 2023[37] - Total revenues for the three months ended October 31, 2024, increased to $979.6 million, up 10.4% from $887.0 million in the same period of 2023[37] - Consolidated total home contracts increased by 44.5% to 1,355 homes, with revenues rising by 25.1% to $705,564 thousand, despite a decrease in average price by 13.4% to $520,711[38] - The grand total for home contracts increased by 47.5% to 1,571 homes, with revenues rising by 30.4% to $845,654 thousand, while average price decreased by 11.6% to $538,290[38] Margins and Expenses - Homebuilding gross margin percentage for the fourth quarter was 18.0%, down from 21.4% in the prior year[4] - Total SG&A expenses were $87.7 million, or 9.0% of total revenues, in the fourth quarter[4] - Homebuilding gross margin percentage for the three months ended October 31, 2024, was 18.0%, down from 21.4% in the same period of 2023[26] - The company reported a homebuilding gross margin of $167.2 million for the three months ended October 31, 2024, compared to $177.6 million in the same period of 2023[26] Inventory and Liquidity - Total inventories as of October 31, 2024, amounted to $1.64 billion, an increase of 21.9% from $1.35 billion in 2023[35] - Cash and cash equivalents decreased to $210.0 million as of October 31, 2024, down from $434.1 million in the previous year[35] - Total liquidity as of October 31, 2024, was $210.0 million in cash and cash equivalents, plus $125.0 million available under a senior secured revolving credit facility[19] Market and Regional Performance - In the Northeast region, home contracts increased by 30.4% to 463 homes, while deliveries rose by 8.8% to 579 homes, resulting in a revenue increase of 10.9% to $279,076 thousand[38] - The Southeast region saw a decline in home contracts by 5.1% to 129 homes and a significant drop in deliveries by 61.1% to 239 homes, leading to a revenue decrease of 59.9% to $121,974 thousand[38] - The West region experienced a substantial increase in home contracts by 70.7% to 763 homes, with deliveries up by 27.6% to 962 homes, resulting in a revenue increase of 49.0% to $353,779 thousand[38] - The Northeast segment saw a 25.2% increase in contracts, rising to 1,809 in 2024 from 1,445 in 2023[41] - The Southeast segment experienced a significant decline in contracts, dropping 45.5% to 517 in 2024 from 948 in 2023[41] - The West segment reported a 26.9% increase in contracts, reaching 2,860 in 2024 compared to 2,254 in 2023[41] Joint Ventures and Strategic Initiatives - Investments in and advances to unconsolidated joint ventures increased to $142.9 million as of October 31, 2024, from $97.9 million in 2023[35] - The company continues to focus on expanding its market presence and enhancing its product offerings through strategic initiatives and joint ventures[39] - Unconsolidated joint ventures reported a 70.1% increase in home contracts to 216 homes, with revenues up by 66.2% to $140,090 thousand[38] - Overall, unconsolidated joint ventures (excluding KSA JV) delivered 216 homes, a 70.1% increase, with revenues up 66.2% to $140.090 million[46] Risks and Future Outlook - The company anticipates potential risks including fluctuations in interest rates and supply chain issues that may impact future performance[21] - For Q1 fiscal 2025, total revenues are expected to be between $650 million and $750 million[9]
Hovnanian Enterprises Inc(HOVNP) - 2024 Q4 - Annual Results